Full & Final

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Shelly30
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by Shelly30 » Mon Nov 05, 2018 3:36 pm
Hello,

Could I have some advise please on offering a full & final settlement to clear the debt and end the IVA please. We have this month completed 4 years and now have 24 months left with a possibility of a further 12 months and my mom has offered to make a payment to end the IVA.

I have been informed by the IVA company to get my mom to email them detailing this but I want to make sure we word this correctly so, if accepted, the debt is cleared and IVA ends.

I'm also interested in how long does this process usually takes?

Any assistance would be greatly appreciated.

Thanks
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Foggy
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by Foggy » Mon Nov 05, 2018 4:33 pm
There is a template here : https://www.iva.co.uk/letter6-f-and-f-offer-during-iva

It usually take a couple of months, but some firms take longer, so it might be an idea to pop in a sentence along the lines of "Payments made after [date] will be deducted from the total amount offered here".

I am assuming that you had a 6 year IVA to start, so have 2 years and then 12 months in lieu of equity, by your wording. In which case an offer should be based on 36 payment at the current rate. This can be rounded down slightly to reflect the savings both IP and crditors will make in administration costs over the next three years.

Your IP will require evidence of the availability of this money (mum's bank statement) and probably photo ID from your mum (money laundering regulations). She will have to pay the IP direct from her own account, not via yours !
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Lisa Thomas
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by Lisa Thomas » Mon Nov 05, 2018 4:52 pm
Establish first whether the 12 month extension will apply or not.

Then you can work out what your offer needs to be based on.

https://www.youtube.com/edit?o=U&video_id=h4dozq9aGak
Shelly30
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by Shelly30 » Mon Nov 05, 2018 9:33 pm
Thank you both for the replies.

Yes it was a 6 year with a possible 12 month extension due to equity but we have a secured loan in place so I don't think equity release will be an option.

How can I establish if the 12 extension will apply or not?

Thank you again
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kallis3
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by kallis3 » Mon Nov 05, 2018 9:42 pm
You need to find out if you have any equity in the first place.
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Foggy
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by Foggy » Tue Nov 06, 2018 7:52 am
You need to get a valuation (at this stage a guesstimate from the local estate agent adfs and Rightmove will do). Take off the mortgage and loan and if what is left is over £5k the extension would have kicked in, come the time.

Most firms use this method : Market value x 85%, less outstanding mortgage / secured loan = equity. If the house is jointly owned and only one in the IVA divide the equity according to your own share.

If the figure you arrive at is well over the £5k trigger, assume the extra year. If it is close, it might be worth getting a proper valuation to prove the equity will not be triggered, to save a years worth of IVA payments.
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Lisa Thomas
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by Lisa Thomas » Tue Nov 06, 2018 10:07 am
Obtain a current valuation from an estate agent and a redemption statement from any chargeholders.
Shelly30
Posts: 21
by Shelly30 » Wed Nov 14, 2018 12:28 pm
Thank you for the replies.

CreditFix are now chasing us to do an annual review but we only had a creditors meeting in August as we needed to lower our payments due to our baby going into private nursery. The creditors agreed a payment of £100 per month (previously £402) but now a review is needed and I'm worried they will try to increase our payments again. But I guess I'm going to have to do this if the F&F offer takes a few months to process (if accepted).

Also, they are wanting us to use a third party system, but I've read in other peoples replies that we don't have to use this system and can provide photocopies. I've rang this company so many times recently but its a struggle to speak to someone - and when I do they say I HAVE to use the third party system.

I just needed to get out of this agreement.
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kallis3
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by kallis3 » Wed Nov 14, 2018 3:22 pm
Check your paperwork - if there is no mention of a secured loan, you don't have to take it.
Shelly30
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by Shelly30 » Mon Nov 19, 2018 10:11 am
Thanks for your help...........offer made so fingers crossed.
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